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The Ultraground Team

The Austin Planning Commission approved a zoning change for a 330-unit multifamily development at 5725 West US Highway 290, with 12% of units designated as affordable at 60% MFI. The 6.5-acre site, currently occupied by a vacant Bank of America with a 10-lane drive-thru, will be rezoned from GR-NP to GR-DB90-DNP if approved by Council.

The project faced opposition from residents of the adjacent West Creek neighborhood, who expressed concerns about increased traffic congestion near schools and youth sports facilities, parking spillover, flooding/drainage issues, and loss of heritage trees. The applicant argued the development would bring much-needed housing and improve water quality controls and detention to meet current code.

Impervious cover was a central point of debate. The applicant plans to use a redevelopment exception to maintain levels similar to current, while opponents pushed for a 40% cap. Commissioner Grayson M Cox proposed a conditional overlay to limit impervious cover to 40%.

His motion failed 2-8.

Most commissioners supported the project. Commissioner Danielle Skidmore highlighted the "net reduction in impervious cover, a vast improvement in water quality, housing located near middle schools and all of the recreational amenities," calling it "the perfect place for more housing." Commissioner Greg Anderson emphasized the "big benefit" of replacing a bank with "zero water detention and quality" with "305 homes of which 12 percent are gonna be affordable."

Chair Claire Hempel, in whose district the project is located, strongly endorsed the development. Referencing profane correspondence opposing affordable housing in the area, she said:

The Commission ultimately voted 10-0, with one abstention, to approve the staff recommendation for the requested zoning and future land use changes.

Here are the key points on this affordable housing deal between the City of Austin, Greystar Development, and the Housing Authority of the City of Austin (HACA). The deal involves the City selling the 19-acre, formerly Home Depot/Chrysler dealership site to HACA-controlled Public Facilities Corporation (PFC) for $1. PFC will enter into 99-year ground lease with Greystar.

Sale Structure:

Development Requirements:

In summary, Austin is able to achieve deep affordability for a 99-year term by partnering with its housing authority and a private developer. The $11M payment allows the City to defease existing debt at no cost. Community benefits are codified through the Master development agreement (MDA), restrictive covenants, and land use approvals.

DMA Development Company and St. Martin's Evangelical Lutheran Church have partnered to transform a humble 0.52-acre parking lot into an 83-unit affordable senior housing product.

The project will participate in the City of Austin's S.M.A.R.T. Housing program, which provides 100% fee waivers for most development fees in exchange for providing affordable housing. 87% of the units will be income-restricted, with 10% at 30% MFI, 35% at 50% MFI, and 42% at 60% MFI. The affordability period will be 5 years.

72 of the 83 units are also eligible for waivers of Austin Water Utility capital recovery fees. While the exact dollar value of the fee waivers is not specified, they likely total hundreds of thousands of dollars and are crucial for making this high level of affordability pencil on the deal.

4 Office buildings could turn into 200 units with a DB90 bonus. OakPoint Real Estate is seeking to rezone their 4.4-acre South Lamar site from LO and GR to GR-MU-V-DB90 to allow for a mixed-use redevelopment with multifamily and ground-floor commercial uses.

The DB90 density bonus would allow up to 90 ft of height in exchange for restricting 10-12% of units at 50-60% MFI for 40 years. OakPoint previously submitted the request under the now-invalid VMU2 bonus program in November 2023 and is now resubmitting under DB90.